Friday, 29 March, 2024, 12:46 PM
Advance Search
Home

Moody’s downgrades Lanka, raises foreign debt risk

Published : Wednesday, 30 September, 2020 at 12:00 AM  Count : 266

COLOMBO, Sept 28: Moody's on Monday downgraded Sri Lanka's sovereign credit rating by two notches, saying the South Asian nation would be hard-pressed to secure funding to service its huge foreign debt.
Sri Lanka was pushed down from "B2" (high credit risk) to "Caa1" (very high credit risk), as the coronavirus pandemic compounded its economic woes, Moody's said in a statement.
"Moody's expects government liquidity and external risks to intensify, as the government's external debt service payments amount to approximately $4 billion (annually) between 2020 and 2025," it said.
Wide budget deficits in the next few years are likely to require at least partial external financing, which is increasingly difficult to access, the international ratings agency said.
Sri Lanka's government quickly dismissed the downgrade as without merit.
"Moody's ratings downgrade unwarranted, analysis erroneous and suggests reckless reaction," the finance ministry said.
It said the government had "repeatedly expressed its ability and willingness to meet all its debt obligations."   -AFP









Latest News
Most Read News
Editor : Iqbal Sobhan Chowdhury
Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka.
Editorial, News and Commercial Offices : Aziz Bhaban (2nd floor), 93, Motijheel C/A, Dhaka-1000.
Phone: PABX- 41053001-06; Online: 41053014; Advertisement: 41053012.
E-mail: info©dailyobserverbd.com, news©dailyobserverbd.com, advertisement©dailyobserverbd.com, For Online Edition: mailobserverbd©gmail.com
  [ABOUT US]     [CONTACT US]   [AD RATE]   Developed & Maintenance by i2soft